Venezuela: A Trump Oil Shock?
US sanctions on crude oil and product imports or exports would push Venezuela into collapse, taking up to 2 million barrels a day off-line. Though strategic and LOOP reserves would buffer the impact in the US, Trump would not likely want to be responsible for a global oil shock. Venezuela is already in a deep inflationary depression and near civil war, so may collapse anyway. It’s an embedded call option in oil that is far underpriced.